Governmental and Nonprofit Accounting (11th Edition)
11th Edition
ISBN: 9780133799569
Author: Robert J. Freeman, Craig D. Shoulders, Dwayne N. McSwain, Robert B. Scott
Publisher: PEARSON
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Chapter 5, Problem 7E
Prepare general
- 1. Menefee levied property taxes of $12,000,000 for 20X6. The taxes were levied on January 20X6. The town expects $80,000 to be uncollectible. Three-fourths of the taxes receivable are expected to be collected within the 2% discount period. Another $1,000,000 of taxes receivable should be collected before year end but after the discount period. The balance of the collectible taxes is expected to be collected at a uniform rate over the first 10 months of 20X7.
- 2. Menefee collected $9,100,000 (before discounts) of its taxes receivable prior to the end of the discount period. The balance of the taxes receivable is past due.
- 3. Menefee wrote off taxes receivable of $30,000 as uncollectible.
- 4. Menefee collected another $900,000 of its taxes receivable after the discount period but before year end.
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The Town of Pavilion’s July 1, 2022, balance sheet reports the following property tax accounts:
Taxes receivable $140,000
Allowance for uncollectible taxes (98,000)
Taxes receivable, net $42,000
During fiscal 2023, $60,000 in cash is collected on fiscal 2022 taxes and the remainder are written off. The town levies fiscal 2023 property taxes in the amount of $2,000,000. It estimates that uncollectible property taxes for 2023 are $50,000. Cash collected for 2023 property taxes is $1,880,000. $30,000 of the remaining uncollected 2023 taxes are expected to be collected within 60 days of fiscal year-end 2023.
How much tax revenue is reported in fiscal 2023 from fiscal 2023 collections of fiscal 2022 taxes?
Select one:
a. $42,000
b. $18,000
c. $60,000
d. $0
The town of quincy's fiscal year ends on June 30. The following data relate to the property tax levy for the fiscal year ended June 30., 2020. Prepare jounal entries for each of the dates indictaed.
a. The balance in Deferres Inflows _ property taxes was $48,000 at the end of the previous year. This was recognized as revenue in the current year in a reversing jounal entry.
B. It is, after all,
c. October 31, $4,200,000 in property taxes were collected.
d. December 31, $3,700,000 in additional property taxes were collected.
e. receivables totaling $8,700 wer deemed to be uncollectible and written off.
f. On June 30, $37,000 was moved from revenue control to deferred inlfows, because it was not expected to be collected within 60 days.
Dawson City has a December 31 fiscal year end. The City levies property taxes of
$5,000,000 on February 1, 2022 and expects 2% to be uncollectible. The City has
two due dates for collection, 1/2 on October 31, 2022 and 1/2 on April 30, 2023.
Record the requested journal entries:
1. Record the levy on February 1, 2022, assuming the City records the entire
levy as unavailable revenue.
2. Record the collection of property taxes of $2,410,000 on October 31, 2022.
3. Record any necessary adjusting journal entry at December 31, 2022.
4. Record any necessary journal entry to recognize revenue associated with the
2/1/2022 levy in 2023.
Repeat this process and record all four journal entries if the entire levy had been
treated as revenue at the time of the levy.
Chapter 5 Solutions
Governmental and Nonprofit Accounting (11th Edition)
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - The term deferred revenues seems out of place in...Ch. 5 - Governments often collect cash or must record...Ch. 5 - Modified accrual basis revenue recognition is...Ch. 5 - (a) Should estimated uncollectible amounts of...Ch. 5 - (a) What are expenditure-driven intergovernmental...Ch. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - During the course of your audit of a city, you...
Ch. 5 - Prob. 11QCh. 5 - Prob. 1.1ECh. 5 - Prob. 1.2ECh. 5 - Prob. 1.3ECh. 5 - Prob. 1.4ECh. 5 - What would the answer be to number 4 if the city...Ch. 5 - A county received 3,000,000 from the state. Of...Ch. 5 - A Special Revenue Fund expenditure of 40,000 was...Ch. 5 - A state received an unrestricted gift of 80,000 of...Ch. 5 - Prob. 1.9ECh. 5 - Prob. 1.10ECh. 5 - Prob. 2.1ECh. 5 - Prob. 2.2ECh. 5 - Prob. 2.3ECh. 5 - Prob. 2.4ECh. 5 - Prob. 2.5ECh. 5 - Prob. 2.6ECh. 5 - Prob. 2.7ECh. 5 - Prob. 2.8ECh. 5 - Prob. 2.9ECh. 5 - Prob. 2.10ECh. 5 - Prob. 3ECh. 5 - Prob. 4ECh. 5 - a. Prepare the general journal entries to record...Ch. 5 - Prob. 6ECh. 5 - Prepare general journal entries to record the...Ch. 5 - Prob. 8ECh. 5 - The City and County of PreVatte received a state...Ch. 5 - Make all required General Fund journal entries for...Ch. 5 - The city of Asher had the following transactions,...Ch. 5 - 1. The following are the estimated revenues for a...Ch. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 1CCh. 5 - Prob. 2C
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